This isn’t anything new this has always been the rule with Fannie/Freddie for cash-out refinance.

@Jason GravesI recently heard this rule of thumb: If you can realize ten years of cash flow through equity today, sell.

He would have to go to court and have a judge rule the QCD to the wife of his half was fraudulent.  

Also during the ownership you can increase the value by improving the property and getting your feet wet.

Many people do end up breaking this rule in hot markets so they can aquire a place or just because they purely speculate on rising values@Beau Fannon I agree, most people I've seen posting don't take into account all expenses related to a property.

Greetings! I am looking to buy a property in the Churchill Downs area and list it on AirBNB. Doing a little research, I'm starting to uncover some of the local laws (mainly from https://www.courier-journal.com/story/n...

@Nick Kellar,Just looking at the work you did, looks like the improvements will be added to the basis of the property rather than the deducting it this year. 

Do the rules still apply if I cash it out?

I’m new to this at thought LLC is good for tax purposes.I’ve done a lot of home improvement and been writing checks with the LLC  account.I was just told that I should not have the rental payable to LLC since it’s my primary residence.Could some one give a quick crash course on top Do’s and Don’ts with LLC?

Is there a hard and fast rule based on a percentage?